Correlation Between Fomento Econmico and Grupe SAB
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By analyzing existing cross correlation between Fomento Econmico Mexicano and Grupe SAB de, you can compare the effects of market volatilities on Fomento Econmico and Grupe SAB and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Fomento Econmico with a short position of Grupe SAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fomento Econmico and Grupe SAB.
Diversification Opportunities for Fomento Econmico and Grupe SAB
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fomento and Grupe is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Fomento Econmico Mexicano and Grupe SAB de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupe SAB de and Fomento Econmico is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Fomento Econmico Mexicano are associated (or correlated) with Grupe SAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupe SAB de has no effect on the direction of Fomento Econmico i.e., Fomento Econmico and Grupe SAB go up and down completely randomly.
Pair Corralation between Fomento Econmico and Grupe SAB
Assuming the 90 days trading horizon Fomento Econmico Mexicano is expected to under-perform the Grupe SAB. In addition to that, Fomento Econmico is 4.97 times more volatile than Grupe SAB de. It trades about -0.16 of its total potential returns per unit of risk. Grupe SAB de is currently generating about -0.15 per unit of volatility. If you would invest 3,468 in Grupe SAB de on September 2, 2024 and sell it today you would lose (79.00) from holding Grupe SAB de or give up 2.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Fomento Econmico Mexicano vs. Grupe SAB de
Performance |
| Timeline |
| Fomento Econmico Mexicano |
| Grupe SAB de |
Fomento Econmico and Grupe SAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fomento Econmico and Grupe SAB
The main advantage of trading using opposite Fomento Econmico and Grupe SAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fomento Econmico position performs unexpectedly, Grupe SAB can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Grupe SAB will offset losses from the drop in Grupe SAB's long position.| Fomento Econmico vs. Grupo Financiero Banorte | Fomento Econmico vs. Alfa SAB de | Fomento Econmico vs. Grupo Mxico SAB | Fomento Econmico vs. CEMEX SAB de |
| Grupe SAB vs. CEMEX SAB de | Grupe SAB vs. Grupo Financiero Banorte | Grupe SAB vs. Grupo Bimbo SAB | Grupe SAB vs. Fomento Econmico Mexicano |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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